Tramp 2.0 Trade war
trade-wars
The US-EU deal struck in July 2025 sets 15% tariffs on European exporters in exchange for large EU commitments to buy US energy and defence equipment and invest in the US.
Under the agreement reached on 27 July 2025, European exporters accept 15% tariffs on US market access, while the EU commits to substantial purchases of American energy and defence equipment plus new investment. Framed by the administration as a win that heads off a threatened 30% tariff, the deal is nonetheless described as the most significant peacetime trade restriction between the US and Europe since the 1930s. EU business reaction was sharply negative, with critics calling it capitulation rather than a negotiated outcome — and its durability depends entirely on Trump’s own unpredictability.
Originally published on Substack, July 29, 2025.